How Blockchain can Improve B2B Sales Market

Blockchain technology has emerged over the last few years and completely transformed how we see tech. It infiltrated many industries, such as banking, education, healthcare, the energy sector, real estate, and many others. Luckily for many, B2B sales were also affected, as they are part of the chain. 

But what is the impact of the cryptocurrency market on business-to-business deals, and how blockchain technology could elevate success in the long term? This article aims to find the answers to these questions.

First of all, what is blockchain?

A blockchain is a digital ledger, somewhat like a business’s accounting records. Complete strangers can freely share the ledger and do not require permission from a central authority. Information added to the blockchain cannot be altered or deleted once it’s been recorded — which makes it highly reliable.

Among the Bitcoin craze that covered the news media, there were many fishy projects that were given life, and the reputation of the industry kind of faltered. But if giants like IBM are going all-in, it makes sense for you to consider blockchain technology for B-to-B sales.

Benefits of blockchain

Obviously, there are many benefits of blockchain technology that make people want to invest in it. Let’s see some of the main ones.

Advanced security

Blockchain technology is necessary to record all transactions permanently. Each transaction is then matched with the next and becomes part of an unbroken chain (hence, blockchain) of information. As such, each link in this chain is encrypted and has a unique identifier that makes tampering with it virtually impossible. Enhanced security is a very strong selling point of blockchains.

Smaller costs

Blockchain technology can benefit businesses with higher transaction volume, by offering an alternative to the usual high fees associated with 3rd party vendors. By decentralizing platforms and encouraging P2P networks, users can make their own rules for exchange. They will be able to set up their own payment systems and avoid paying those high commission rates to credit card companies.

Fast speeds

Efficiency is one of the core values of blockchain technology. It can help streamline previously slow and cumbersome processes while creating more reliable data, generating efficiencies, and reducing costs that benefit both businesses and customers. While these can seem like small details to worry about, they actually make a big stylistic difference in your industry.

How does blockchain improve B2B sales?

Whether we are talking about smart contract platforms to sign deals or checking the supply chain, there are many areas where blockchain effectively sorts many problems with B2B sales. Let’s see some (because there are many) of the biggest advantages of blockchain technology that can effectively improve many business procedures.

Fair transactions

Blockchain can automatically validate transactions in real time and communicate them to buyers and sellers. By working with cryptocurrencies like Ethereum, businesses can take advantage of the increasingly accessible digital payment processing solutions blockchain provides. Smart contracts are ideal for building trust since there is no middleman and the condition is largely dependent on two things: the gas price (which is based on the Ethereum price) and what the two parties have agreed upon. If one of the conditions isn’t met, the transaction doesn’t go through.

Supply chain management

The problem with supply chains is that they’re slow, expensive, and out of control. Blockchain disrupts this by creating decentralized solutions — from improving delivery speeds to cutting out third-party distributors and retailers in transactions. The traceability of products is also made easier for consumers, who can easily check the status or journey of a product right on their mobile phones. Especially in the B2B industry where orders are made in bulk, blockchain could reduce a lot of burden and nerves during the whole process. And what makes it worthwhile is its main benefit: automation.

Reduced costs for the businesses

Blockchain technology for business, in essence, offers businesses the ability to remove the middlemen from transactions, reducing the costs of B2B transactions. This is because of how decentralized each blockchain network is. In fact, removing intermediaries from business transactions cuts out the price and running time associated with everything that comes between two parties when making a trade — something we could all get behind! After all, to be competitive in this very saturated market, businesses need to offer prices that can beat out their rivals but at the same time be profitable, and sometimes — without blockchain, this might not be possible. 

Safe and secure

Security is one of the main concerns ahead of businesses across the world. When everything moves online, online threats become a problem that will need an immediate response. Blockchain technology provides transparency for both vendors and consumers by utilizing cryptography to ensure values are indelible and stored securely.  Cryptography, as well as the hashing algorithms, will make DDoS attacks hard to accomplish, and it provides an extra layer of security, especially in the online space where documents and sensitive information will be stored.

Faster transactions

In international trade, transaction speed matters. For B2C sales it is not such an issue, since everything goes smooth and even SWIFT payments don’t charge much. As for large B2B payments, having a 3-4% commission fee and a couple of days between payments might be crucial for businesses. After all, 3% out of $1,000,000 is $30,000. Not a small amount of money. And on top of that, transactions of that magnitude can be processed in 3-5 working days during peak times. Not anymore. With blockchain technology, we eliminate time, and we process large transactions with minimum fees.  You won’t lose out on business as everything will arrive within minutes.

Summary

Blockchain technology is still not mature but is already shaping the world we live in. It makes drastic changes to the way we see many industries. This will continue to impact the whole business world, and the B2B sales market is no exception. With the variety of perks that it offers, blockchains will soon be embraced by many companies, regardless of their size.